Defining Stock Action Rules
To define stock action rules, use the Stock Action Table (STOCK_ACTN_TBL), Stock Action Reason Table (ST_ACTN_RSN_TBL), and the Stock Action Rules (ST_ACTN_RULE) components.
This topic provides an overview of stock action rules and discusses how to define stock action rules.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
STOCK_ACTN_TBL |
Define a stock action and associate it with a stock action type. |
|
|
ST_ACTN_RSN_TBL |
Link an HR action/reason code combination to a stock action. |
|
|
ST_ACTN_RULE |
Define processing rules for stock actions. |
Changes to an employee's human resource status may affect the employee's participation in your stock option plan. You can define how various changes to an optionee's human resource status affect stock plan processing. The stock action rules you define here integrate with HR.
To define stock action rules:
Define a stock action and associate it with a stock action type.
Link an HR action/reason code combination to a stock action.
Define the rules by which existing grants and vesting schedules are to be modified by various stock actions.
The Stock Action Table
This table defines all unique stock actions that integrate with HR. The effective-dated table describes each stock action and the corresponding stock action type. The system recognizes three stock action types: termination, leave of absence, and return from leave. The stock action type determines the processing that is performed when a particular stock action is processed for an employee. These actions effect existing stock option grants and vesting schedules.
Examples of stock actions you can set up and their related types are:
|
Stock Action |
Stock Action Type |
|---|---|
|
DEA (death) |
T (termination) |
|
DIS (disability) |
T (termination) |
|
LOA (leave of absence) |
L (leave of absence) |
|
RET (retirement) |
T (termination) |
|
RFL (return from leave) |
R (return from leave) |
|
TER (termination) |
T (termination) |
The Stock Action Reason Table
This table correlates HR action and HR reason code combinations with a stock action. The system refers to this table to determine when to issue a workflow notification to the stock administrator. Multiple HR action and HR Action/HR Reason combinations can correlate to the same stock action.
Some HR Action/HR Reasons that might be associated with Stock Actions are:
|
HR Action |
HR Reason Code |
Stock Action |
|---|---|---|
|
COM (completion) |
none |
TER |
|
FSC (family status change) |
DEA (death) |
DEA |
|
LOA (leave of absence) |
none |
LOA |
|
RET (retirement) |
none |
RET |
|
RFL (return from leave) |
none |
RFL |
|
TER (termination) |
none |
TER |
|
TER (termination) |
DEA (death) |
DEA |
|
TER (termination) |
DIS (dishonesty) |
DIS |
Stock Action Rules Table
This table defines the rules that modify existing grants and vesting schedules for terminations, leaves of absence, and returns from leave stock action. Changes that you do not define, but that always occur, such as setting cancel date and cancel reason for a termination are coded in the process.
Examples of termination stock action rules are:
|
Stock Action |
Stock Action Type |
Vest Immediately |
Expire Grace Period (months) |
ISO to NQ Governing Body Rule (T/D/N) Termination/Disability/None |
|---|---|---|---|---|
|
TER |
T |
No |
1 |
T |
|
DIS |
T |
No |
3 |
D |
|
DEA |
T |
Yes |
12 |
N |
|
RET |
T |
No |
1 |
T |
|
LOA |
L |
No |
0 |
N |
Examples of leave of absence stock action rules are:
|
Stock Action |
Stock Action Type |
Suspend vesting |
Vest Defer Grace Period (months) |
Vest Defer Grace Period Service Rule (months) |
Exercise Suspend Rule (D/R/N) Defined, Return from Leave, None |
Exercise Suspend Period (months) |
|---|---|---|---|---|---|---|
|
TER |
T |
No |
0 |
0 |
N |
0 |
|
DIS |
T |
No |
0 |
0 |
N |
0 |
|
DEA |
T |
No |
0 |
0 |
N |
0 |
|
RET |
T |
No |
0 |
0 |
N |
0 |
|
LOA |
L |
Yes |
12 |
3 |
D |
3 |
Use the Stock Action Table page (STOCK_ACTN_TBL) to define a stock action and associate it with a stock action type.
Navigation:
This example illustrates the Stock Action Table page.
Field or Control |
Description |
|---|---|
Stock Action Type |
Select Leave of Absence, Return from Leave, or Termination. |
Use the Stock Action Reason Table page (ST_ACTN_RSN_TBL) to link an HR action/reason code combination to a stock action.
Navigation:
This example illustrates the fields and controls on the Stock Action Reason Table page.
You can leave the Reason Code blank and let it serve as a wild card. This causes all HR actions, regardless of reason, to be attached to the stock action.
Use the Stock Action Rules page (ST_ACTN_RULE) to define processing rules for stock actions.
Navigation:
This example illustrates the Stock Action Rules page.
Field or Control |
Description |
|---|---|
Stock Action |
Select from available options. Define stock actions on the Stock Action Table page. |
Termination Rules
If the stock plan type is termination, these fields become available.
Field or Control |
Description |
|---|---|
Vest Immediate |
Select to have all unvested shares vest as of the day before the termination date. |
Expire Grace Period |
Enter the number of days or months the employee is allowed to exercise vested shares after a termination. The termination expiration date is populated on the vesting schedule with a date equal to the stock action date plus the expire grace period. |
ISO to NQ Rule |
Specify the governing body rule for calculating the grace period for an ISO exercise after which the exercise is treated as an NQ. Select Disability, Termination, or None, which mean always exercise as an ISO. |
Leave Of Absence Rules
If the stock plan type is Leave of Absence, these fields become available.
If the stock action type is Return from Leave, none of the Leave of Absence Rules fields are available. You must enter a new row to enter data in these fields.
Field or Control |
Description |
|---|---|
Suspend Rule |
Specify how the right to exercise is to be suspended during a leave of absence. Select Until RFL to suspend exercise rights for up to two years (the default) until the optionee returns. The system automatically sets the Return from Leave out two years, which is likely to be longer than any leave. When the actual RFL is processed, the system resets this end date. Select Defined to suspend exercise rights for a defined period of time. Select None (the default value) to allow optionees to exercise grants while on leave. |
Suspend Period |
Available if you select a Suspend Rule of Defined. Enter the number of days or months to suspend the right to exercise options. |
Suspend Vesting |
Select to suspend vesting of the unvested shares during the leave of absence. |
Deferral Grace Period |
Available if you selected Suspend Vesting. Enter the number of days or months before which an optionee must return from leave so that the vesting schedule is not deferred by the leave period. |
Grace Required Service |
Available if you selected Suspend Vesting and the Deferral Grace is greater than 0. Enter the number of days or month's service required for an optionee to be eligible for the vest deferral grace period. |